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Bear claws energy but these stocks have staying power

S&P 500 Energy sector suffers deep drawdown but positive secular trends remain
Bear claws energy but these stocks have staying power
  • One oil company has a prize high quality asset base 
  • EV battery supply chain leader has seen its valuation pull back

Rising earnings per share forecasts might seem a confusing anomaly given the S&P 500 is now in bear territory. As noted by Liz Ann Sonders, Chief Investment Strategist at Charles Schwab, something similar was observed in the bear market of the early 2000s. It took time for earnings to peak after the market did. 

Having been the standout sector in the first half of the year, energy stocks have sold off hard. Does this pull-back signal an attractive entry point or, as in the early 2000s, does the market have further to fall? The three companies analyst Neil Wilson discusses in this week's Alpha report all have secular drivers but prices may be pulled around more by the market. 

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